- Andrew Tate’s recent endorsement of the DADDY coin underscores the influential role celebrities play in the cryptocurrency market.
- A report has flagged potential insider trading activities in both the DADDY and MOTHER coins.
- This involvement raises questions about the ethical practices within the memecoin sector.
Andrew Tate’s endorsement of DADDY coin sparks a surge in interest while raising potential insider trading concerns in the crypto market.
Andrew Tate’s Reemergence with DADDY Coin
After nearly a year of social media silence, former kickboxer and reality television star Andrew Tate re-emerged online, causing a considerable stir among investors by introducing his own cryptocurrency. He also initiated a donation drive, encouraging those who have profited from his endorsements to support social causes.
DADDY Coin Gains Traction
The cryptocurrency community buzzed when Tate endorsed the Solana-based Daddy Tate (DADDY) memecoin. Influenced by Australian rapper Iggy Azalea, who launched her own memecoin called Mother Iggy (MOTHER), Tate declared on social media that he was backing DADDY to challenge MOTHER.
“I heard about a coin called MOTHER, so now I’m supporting a coin called $DADDY to flip it for the patriarchy,” Tate posted on X (formerly Twitter).
DADDY Coin Outstrips MOTHER
Despite Tate’s claims that he wouldn’t profit from the memecoin, his backing of Daddy Tate resulted in a remarkable surge, with the coin’s value increasing by 209% in the past 24 hours, as reported by DEXScreener. In contrast, MOTHER saw a modest rise of only 3.98% during the same period, according to CoinMarketCap.
Signs of Insider Trading
Blockchain analytics firm Bubblemaps identified suspicious insider activities surrounding the launch of DADDY. According to their data, insiders acquired approximately 30% of the coin’s supply before Tate’s public endorsement. These initial holders are now sitting on assets worth over $45 million.
Bubblemaps further revealed that 11 wallets, funded with nearly identical amounts from Binance (BNB), bought 20% of DADDY before the first public tweet by the coin’s official handle, DaddyTateCTO. Additionally, while Tate hasn’t sold any tokens—a fact verified by Bubblemaps—other questionable transactions have come to light.
“More celebrity tokens will come, but remember that most of them end up worthless and are often plagued by insider trading,” Bubblemaps warned.
Impact on Solana and Established Cryptocurrencies
The rising popularity of memecoins like DADDY and MOTHER raises concerns about their impact on established cryptocurrencies. Despite the anticipation that Solana-based memecoins would boost the SOL network, Solana has struggled to break its resistance level at $159.86. The Relative Strength Index (RSI) also reflects a bearish sentiment, remaining below the neutral level.
Despite the launch of several Solana-based memecoins, new addresses on the Solana network have declined significantly, dropping from 26.65 million in May to 11.09 million in June, according to data from The Block.
Conclusion
The involvement of celebrities like Andrew Tate and Iggy Azalea in the cryptocurrency market continues to drive significant buzz, as seen with the DADDY and MOTHER memecoins. However, the potential for insider trading and the impact on established cryptocurrencies like Solana necessitate a cautious approach from investors. As the memecoin frenzy grows, market participants must remain vigilant to the inherent risks and ethical challenges.
